Angola wants to reduce reliance on loans from China

17 December 2018

Angola plans to reduce its dependence on China’s loans and diversify funding sources, the Angolan Energy and Water Minister said in recent statements in Tokyo to the Nihon Keizai Shimbun (Nikkei) newspaper.

João Baptista Borges said that the country intends to receive funding from other countries or institutions, in order to reduce dependence on China, which holds about 70% of Angola’s foreign debt.

Borges mentioned the approval of the new Private Investment Law last June to say that the country intends to obtain investment and loans from Japan, Europe and the United States.

In November Angolan state debt totalled US$69.5 billion, according to the director of the Debt Management Unit, Walter Pacheco, who said that 60% or approximately US$40 billion corresponds to external debt, with the remaining 40% or US$30 billion being domestic debt.

Recognizing that China is “a special country for Angola,” the minister said he wanted to foster relations with Japan, Europe and the United States, adding that he preferred to give priority to “countries that are willing to transfer technologies and knowledge.”

Borges said that Angola is working to reduce its dependence on oil exports, and that it is necessary to improve basic infrastructure, including electricity and water supply, in order to attract industry.

In his remarks to the Nikkei, the Angolan minister requested technical assistance and investments from Japan to help his country build thermal power plants, energy transmission networks and power stations.

The Angolan minister also gave a talk to British entrepreneurs and investors in London, where he was invited by Chatham House, during which he presented the action plan and the potential of the energy and water sector in Angola.

The Angolan news agency also reported that the minister was received by the Minister of State for Africa and International Development, Harriet Baldwin, participated in the “InvestAfrica” Forum and held a meeting with Baroness Lindsay Northover, the UK’s special envoy to Angola and Zambia. (macauhub)